Telecom
Stakeholders Worry Over Possible Dominance of Starlink on Nigeria’s ISPs Market
Contrary to popular opinion, stakeholders in the Nigerian telecommunications industry have expressed their worries over the possible dominance of Starlink in Nigeria’s Internet Service Providers (ISPs) market.
They expressed their views at the Telecom Sector Sustainability Forum third edition (TSSF 3.0) organised by Business Remarks themed “Starlink: A Threat or Prospect to the Sustainability of Nigeria ISPs, MNOs and Infracos held in Lagos.
Acknowledging the fact that the emergence of Starlink has re-introduced satellite internet technology to the market space, Nigeria ICT stakeholders however noted that the telecoms regulator needs to address the business model to protect local players and create healthy competition.
Recall, SpaceX’s satellite internet service, Starlink announced its availability in Nigeria, months after it signed an agreement with the Nigerian government to bring in its satellite-based internet coverage, thereby, making Nigeria the first African country to use satellite internet and 46th in the world.
The public believes that the introduction of Elon Musk’s satellite internet service, Starlink will widen competition in the Nigerian internet market while disrupting the internet market.
Starlink was included alongside 37 other Internet Service Providers, increasing the number of ISPs issued licenses to operate in Nigeria to 255 as of September 2022, up from the 187 reported in December 2021.
Speaking at TSSF 3.0, eStream Network Chief Executive Officer, Muyiwa Ogungboye who was ably represented by the Chief Operating Officer, Mr Martins Akingba stated that Starlink can be a threat to the local ISPs if the gaps found with the solutions are treated.
According to him, if the objective of the Nigerian Communications Commission (NCC) with Starlink’s introduction is to provide high-speed internet access to underserved and rural areas in the country, this solution will not serve the purpose.
Stating that Starlink is not designed for the Nigerian rural market, Akingba highlighted pricing and lack of local and after-sales support as part of the reasons.
Furthermore, he said ISPs served both the retail and the enterprise markets. In his words “A lot of our enterprise market is already considering the solution but security is a major concern because they do not have an idea of how the traffic is being routed.
“As an ISPs local player, the advent of Starlink makes us question if the regulator is really careful of the investments made by players in this industry, millions of naira have already been invested in infrastructures even in the underserved areas,” he asked.
Also speaking, the Chief Executive Officer, Pan African Towers, Azeez Amida who was represented by the General Counsel, Babatunde Olaniyan said Starlink might both be a threat and a prospect but the wide adoption of the 5G network in Nigeria will pose a greater challenge to the solution.
On his part, the Chief Executive Officer of VDT Communications, Mr Biodun Omoniyi encouraged local players not to see the solution as a threat because Starlink is a leo-satellite, not too far fetch from the satellite technology.
He posited that as a disruptor, local players need to identify the gaps and fix them to have an edge over the solution.
“There will definitely be some adjustment in the market, and not a case of the winner takes all kind of situation. Some people will take up the solution, some will continue to rely on their mobile devices for internet access and others will be for fixed wireless access. If this happens, the consumers are provided with alternatives.” Omoniyi noted.
Although, he said being the first to launch is not really a big thing but is the industry, players and citizens are protected. Is the data accessible to the regulators, how do we do KYCs, and can the rural dwellers afford it, questions such as these need to be asked following the solution emergence in the Nigerian space.
Ominiyi charged the regulators to licence both the sellers, agents and providers to create a better ecosystem while encouraging operators to address their business models (pricing, positioning and support) to stay afloat and be profitable in the market.
Mr Lanre Olanrewaju, Chief Executive Officer, Equinoxcore Technology, spoke on the challenges subscribers are facing such as loss of money, falling victim to fraud, poor signal quality due to poor installation, data loss, and irregularity in the cost of gadgets.
According to him, the lack of physical office and after-sales support is a major concern for users and this challenge will continue to persist if there are no proper regulations around this.
Lanre noted that the disruptive agenda might not be achieved. On contribution to the economy, he asked if the organisation pays VAT.
Expressing his concern, the Head of Operations, Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr Gbolahan Awonuga said the licenses given to Starlink might lead to the extinction of ISPs and also the domination of the market space if not checkmate.
Awonuga urged NCC to create a level playing field for operators bringing to remembrance the extinction of CDMA in the Nigerian Telecoms market. He also make case for affordable internet service for consumers.
In addition, the Executive Secretary of the Association of Telecommunications Companies of Nigeria (ACTON), Mr Ajibola Olude stated that the regulatory safety might be weak, once there is no balancing game.
He also urged NCC to create guidelines to safeguard local players, edges on the value chain such as generating employment opportunities and restrictions in the rural areas.
On her part in her welcome address, the Convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remarks stressed that given the internet’s increasingly important role as a communication tool, internet connectivity has become a vital component of daily life, and many nations have embarked on ambitious projects to expand and improve access to the internet.
“It is believed that the use of satellite technology in Nigeria dates back to the military era and also a known fact that satellites have played a fundamental role in providing connectivity. In the last few years, the space industry has seen a rapid increase in satellite launches.
“Although Nigeria is regarded as Africa’s fastest-growing telecommunications market, its broadband penetration is largely dependent on fibre connectivity,” she said.
She recalled that at the first edition of the telecoms sector Sustainability Forum, the Nigerian Communications Commission (NCC) noted that as a result of the challenges militating against ISPs, deliberate policies and regulations are being looked at in the Commission in ensuring that ISPs and other smaller players in the industry thrive.
Olanrewaju stated further that it is on this basis that stakeholders and experts were assembled to dissect this edition’s theme.
When Okezie Kelechi lost his SIM card, the one he had used since his secondary school days, he didn’t think much of it.
He was shocked weeks later to find out it had been reassigned to someone else.
“I had no idea that if your SIM card has been inactive for more than three months, they will resell it,” he wrote on social media.
“They recycled my SIM card and sold it. Same number, I have had it since secondary school.”
Kelechi’s story is far from unique.
Across Nigeria, more people are waking up to the realities of what is known as SIM recycling, a process where telecommunication companies reassign inactive phone numbers to new users. While allowed under existing rules set by the Nigerian Communications Commission (NCC), the practice is now raising serious concerns over data privacy, fraud, and national security.
A regulatory gap with real-life consequences
Experts in Nigeria’s telecommunications and security sectors are increasingly warning that the NCC’s failure to establish stronger oversight of SIM recycling is endangering millions.
“Beyond the data breaches, this issue posed a big threat to national security. I have always maintained the need for a central data system in Nigeria,” said Daniel Makolo, a retired senior official of the Nigerian Immigration Service to The ICIR.
“There’s much more to this if we don’t pay attention to an appropriate central data mining system that gives us a history of each person in the country.”
Ayodele Ajayi, an engineering professor at the Federal University of Technology, Akure, explained the security risks from his own experience.
“I used to have one Airtel number, but I travelled out. Before I came back, it was reallocated to another user,” he said.
Because phone numbers are tied to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs), reassigning them can expose people to identity theft and financial loss.
The NCC should find a way to notify users when their numbers are at risk of being deactivated, Ajayi urged.
He also recounted an incident he witnessed at a bank, “a woman was narrating how she used to have a particular number but lost it. Somebody saw the number and started using it.
The woman said that before she could act, the person who got the number had started using it and had connived with a bank office to almost wipe out all her savings.
“Upon arriving at the bank to check her account balance, she found out that she had only N50,000 left from about N5 million she had saved up.”
Ajayi emphasised that while recycling is a practical move for telcos to manage limited number availability, more caution is needed.
“Let people know so they can migrate their data to another line, particularly now that almost every channel we use is linked to the phone number, including our bank verification number (BVN)”, he stated.
Kelechi recalled that his number was reassigned to another user despite still being active on WhatsApp.
“I used to wonder why random Hausa boys were always messaging me and calling me baby.
He added that “when I finally visited MTN office in Nigeria, I was told the line has been sold to someone else. E pain me, I no go lie.”
Another social media user Elizabeth Kandi, @DrETKandi warning others about the hidden risks of SIM inactivity alleges that when reassigned the new user can have access to your USSD banking.
“If your Nigerian number was connected to your Nigerian bank accounts for USSD, if you didn’t use it for long, the network provider can disconnect and sell the number to someone else…but that person would be able to access your money via USSD,” Kandi wrote.
Her post underscores the growing fear that recycled numbers, still linked to sensitive services like mobile banking, can open the door to fraud and financial loss
Why do Telcos recycle SIMs?
At a virtual stakeholder meeting in April 2025, NCC Executive Vice Chairman Aminu Maida acknowledged the concern noting that with the evolving landscape, it has become necessary to address emerging challenges that could undermine consumer rights.
He further noted that the Quality-of-Service Business Rules 2024 stipulate that a prepaid line without a revenue-generating event for six months must be deactivated.
This means if a prepaid SIM card goes unused for six months (i.e., no calls, texts, or data use), it must be deactivated.
If the inactivity continues for another six months, the number may be recycled/reallocated to a new user.
In Section 28 of the NCC’s draft business it is stated that all recycled SIMs must be purged of any NIN attached to allow a new user to link their own NIN. But real-world cases suggest that in practice, many recycled numbers are not properly sanitised before reassignment.
The business case for SIM recycling
For telecom operators, recycling isn’t just a technical choice, it’s economic.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), explained that subscribers do not have ownership rights to SIM cards in their possession, as the telecom operators pay procurement and recurring costs for each registered subscriber.
He further explained that SIM cards are “recycled” to prevent number exhaustion while reducing the cost of generating and maintaining them.
“SIM cards are reassigned to reduce the dormant subscribers, as telcos are profit-oriented organisations,” Adebayo said.
In the exercise of its powers under Section 70 of the NCC Act (2003), the commission made provisions for the development of a new numbering plan for Nigeria. Under the provision, telcos are obligated to pay a sum that is the ‘numbering plan fees’ to maintain their allocated numbers.
Airtel Nigeria has restated its commitment to transparency, customer safety, and regulatory collaboration following recent regulatory enforcement by the Nigerian Communications Commission (NCC).
The NCC had served Airtel Nigeria a notice of sanction over some alleged SIM infractions in Kano State and consequently slammed a fine of N104 million on the telecommunications firm.
NCC had in a letter, addressed to Airtel Nigeria Chief Executive Officer, dated May 26, 2025, signed by Chizua Whyte, head, Legal and Regulatory Services, and Mohammed Dari, acting head, Compliance Monitoring and Enforcement, on behalf of Dr Aminu Maida, executive vice chairman, NCC, titled: ‘Notice of Sanction: Non-Compliance with SIM Registration Directive in Kano,’ where the infractions were spelt out.
According to NCC, Airtel infractions include unauthorised SIM registrations using 198 unapproved devices, resulting in 8,275 registrations outside the 281 verified Airtel shops; premature activation of 63 MSISDNs prior to proper SIM registration, contrary to the provisions of the Registration of Communications Subscribers Regulations 2022; failure to conduct effective eyeballing, leading to 407 fraudulent SIM registrations with multiple NINs, contrary to the provision of the Registration of Communications Subscribers Regulations 2022 and failure to provide satisfactory explanation for SIM registrations conducted between 12.00 a.m and 6.00 a.m.
On the matter, the letter revealed that there were some letter exchanges and subsequent meetings on the infractions between the telecom regulator and Airtel, starting from January 12, 2025, March 19, 2025, March 24, 2025, and March 27, 2025, respectively.
Apparently, after investigations and responses from Airtel, the NCC was not satisfied and this led to the fine of N104 million, which was to be paid within seven days from the date the letter was issued.
Specifically, NCC fined Airtel N5 million, N12 million, N81.4 million and N5 million for the infractions respectively.
Reacting, Airtel, expressed appreciation to the NCC for uncovering the infractions, describing the development as a critical opportunity to strengthen internal processes and further align with national security and regulatory expectations
“We thank the NCC for its vigilance and continued support in protecting the integrity of the telecoms ecosystem. Airtel takes these findings seriously and is already implementing corrective measures,” a spokesperson for the company said.
Only recently, Airtel Nigeria’s CEO recently announced that the company is doubling its investment in the country, focusing on network expansion, fiber-to-the-street rollout, 4G/5G deployment, customer care upgrades, and digital infrastructure security.
These investments reinforce Airtel’s long-term vision of building a resilient and forward-looking telecom network that meets the evolving needs of Nigerians.
“Our systems are constantly evolving to stay ahead of scammers and malicious actors,” the spokesperson added. “This is not just about compliance; it’s about our responsibility to the millions of Nigerians who rely on Airtel daily.”
Airtel Nigeria says it will continue to work closely with the NCC and other arms of government to ensure high standards of service and safety for all telecom users nationwide.
Kenya is celebrating its regulatory ecosystem being ranked as the most progressive in Africa. The International Telecommunications Union (ITU) has ranked the East African country first in its most recent ICT Regulatory Tracker.
ITU’s ICT Regulatory Tracker is an evidence-gathering tool for decision-makers and regulators. It demonstrates the effectiveness of regulatory systems in the age of technology.
The ITU evaluates the design of the national regulatory authority, the scope of the regulatory mandate, the obtaining regulatory environment, and the robustness of the competition framework in member countries.
Kenya received 93 points, up from 92 in 2023, and now leads the continent in best practices for ICT regulations.
Nigeria and South Africa finished second and third, with 92 and 88 points respectively. Malawi, Egypt, Rwanda, Morocco, Uganda, Burkina Faso, and Senegal complete the top 10 list.
Globally, Kenya was ranked 20th out of 194 countries covered.Italy led the rankings, with 100 points.
The regulator, Communications Authority (CA) of Kenya, said the achievement underscored Kenya’s commitment to creating a robust, technology-neutral regulatory environment that supports innovation, affordability and access.
Steve Isaboke, permanent secretary for broadcasting and telecommunications, visited CA Centre in Nairobi following the announcement on Thursday.
“The ranking is a clear testament of the excellent work that CA has done in spearheading Kenya’s digital transformation and driving digital access for all,” he said.
“After 25 years, CA’s regulatory regime has attained maturity, and gained global recognition. This ranking shows that the CA staff and leadership are executing their work diligently.”
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